XP Power shares sink as Advanced Energy drops possible takeover offer

(Reuters) - London-listed shares of XP Power dropped as much as 24% in early trade on Tuesday after Colorado-based Advanced Energy Industries dropped a possible 468 million pound ($593.8 million) offer for the power converter solutions provider.

Advanced Energy Industries said it did not identify any additional elements that would justify a revised proposal after the previous potential offer was rejected last month by XP Power.

In a separate statement XP Power said Advanced Energy had not contacted the company since the indicative proposal was rejected on May 13.

The latest 1,950 pence-per-share conditional, indicative all-cash proposal is the third such offer from Advanced Energy for the London-listed firm.

Shares in Singapore-based XP Power hit an over one-month low of 1,186 pence, bottoming the FTSE Small Cap index.

Advanced Energy made an all-cash 1,700 pence-per-share offer in October last year, and had sweetened it to 1,850 pence the following month.

($1 = 0.7881 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Mrigank Dhaniwala)